Tuesday, December 15, 2009

Tuesday 12/15/09 Market Update

An updated 1 minute chart of the S&P 500 index is above. After a gap down today, there was an impulsive looking upward wave that stopped short of yesterday's highs. A zigzag down ensued.

The impulsive wave up appears to have been v of (v). If a flat iv wave preceded it as shown, v actually moved higher than the peak of wave iii. Waves i and iv nearly crossed, but this is the most satisfying count I can see. As mentioned yesterday, the labeled [B] of iv wave looks like a three. So a flat iv wave works well here.

Wave [ii] appears to be underway but so far it has been small in price and duration. It is possible that [ii] completed, but it seems unusual for a second wave to retrace less than 38.2% of the preceding first wave. If the low today is broken, a second zigzag of wave [ii] would probably be underway. If resistance it taken out to the upside, look for impulsive waves within wave [iii].

A 10 minute chart is above. C of (Z) of [2] is underway. [ii] of C looks incomplete.

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